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ANNUAL REPORT 
OF 

THE ONTARIO ENERGY BOARD 
YEAR ENDING DECEMBER 31, 1961 




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ONTARIO 



phone em. 3-1211 ONTARIO ENERGY BOARD 790 bay street 

LOCAL 2-2851-2-3 TORONTO 2 



January 23, 1962. 



Sir: 



I beg to submit the Annual Report for 
196l of The Ontario Energy Board, and I have 
the honour to be, Sir, 

Your obedient servant, 




A. R, CR02TER, 
CHAIRMAN. 



ontario energy board 
library: 



The Honourable R. W* Macaulay, Q.C, 
Minister of Energy Resources, 
Parliament Buildings, 
Toronto, Ontario. 



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ANNUAL REPORT 



OF 



THE ONTARIO ENERGY BOARD 



YEAR ENDING DECEMBER 31, 1961. 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/annualreportonta1961onta 



ANNUAL REPORT 
YEAR ENDING DECEMBER 31, 1961. 

The Board herewith submits its report for the 
calendar year of 196l, pursuant to Part III, Section 39 (1) 
of The Ontario Energy Board Act. 

ORGANIZATION OF THE BOARD AND PERSONNEL 

Board 

Chairman - A.R. Crozier, B.A. 

Commissioner and Secretary - J.J. V/ingf elder 

Commissioners: - L.R. MacTavish, Q.C. 

- D.M. Treadgold, Q.C. 

- E.A. Allcut, P. Eng. , 

M . E . I • C • 

Staff 

Assistant Board Secretary - I.C. Fidler, B.A. 

Energy Returns Officer - /.P. Armes, C.A. 

Assistant Returns Officer - O.J. Cook, C.A. 

Board Engineer - H.G. Clark, P. Eng. 

Clerical and Secretarial - Two (2) 

The functions and responsibilities of the Board as 
outlined in its i960 Report have not been materially 
changed and are, therefore, not repeated herein. 



-2- 

In addition to its formal hearings, the Board in 
conjunction with its staff has continued its study of 
various matters relating to the utility operations under 
its jurisdiction, in particular with respect to returns 
and accounting procedures of utility companies. 

APPLICATIONS HEARD 

The Municipal Franchises Act 

Approval of Terms and Conditions of 

Franchis e Agreement s 9 

Certificates of Public Convenience 

and Necessity 9 

The Ontario Energy Board Act 

Gas Rates • 22 

The Energy Act 

Gas Storage Designations 2 

Secondary Oil Recovery 2 

Gas Explosions 1 

Leave to Construct Pipe Lines 11 

Pipe Line Expropriations 33 

TOTAL 89 

RECEIPTS 

Filing Fees and Hearing Costs $22,809.50 

Documents 30.00 

sp22,339.50 



-3- 

GENERAL 

The Board* s activities during the year showed an 
increase over the preceding year conseauent on the rrowth 
of the natural gas and petroleum industry. 

The major activity of the Board during the year was 
the completion of the rate hearing of the Consumers' Gas 
Company which commenced in September of the preceding year 
and concluded in April, with the Board's Reasons for Decision 
being issued in August. 

In the process of arriving at its decision, the Board 
was confronted with a formidable array of exhibits including 
approximately nine hundred pages of evidence given at the 
hearing, all of which was exhaustively reviewed and con- 
sidered. In addition, the Board studied numerous rate cases 
relating to other jurisdictions both in Canada and in the 
United States. 

With the rapid and continuing increase in Ontario 
both in the number of gas consumers and the volume of gas 
consumed, proper control of rates becomes increasingly 
important, and the Board considers that its decision in 
the Consumers 9 Gas Rate Case will materially assist in 
accomplishing this purpose. 

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The twenty-two rate hearings which were held, with 
the exception of the application of the Union Gas Company 
of Canada Limited, were of a relatively minor nature. The 
Union Gas rate application hearing was commenced on Sept- 
ember 20th, 196l. Following an outline by the company of 
the purpose of the application and in consideration of the 
need for additional time in order to prepare new rate 
schedules, as well as to obtain financial information with 
respect to the operations of the Company, the Board granted 
an adjournment of the hearing to January 3, 1962. 

During 1961, two applications were heard for the 
designation of gas storage areas in Lambton County. The 
application of Imperial Oil Limited was heard at Sarnia in 
March for the designation of five depleted or partially 
depleted gas pools for the storage of gas. The potential 
working storage capacity of these five pools would add more 
than fifty billion cubic feet to the presently developed 
twenty-seven billion cubic feet of working storage capacity 
in Ontario. 

The joint application of Union Gas Company of Canada 
Limited and Ontario Natural Gas Storage and Pipelines Limited 
for the designation for storage purposes, of an additional 
partially depleted gas pool in Lambton County, was heard at 



-5- 

Sarnia in August. The potential working storage capacity of 
this pool would add More than fifteen billion cubic feet to 
the presently developed working storage capacity in Ontario. 

The 5oard f s report to the Lieutenan t-<~overnor-In- 
Council with respect to the above mentioned applications 
will be made in due course. 

Three applications for oermission to conduct water 
flooding operations for the secondary recovery of oil, 
were referred to the Board by the Minister of Energy Resources 
One of these is in the Petrolia Field, Enniskillen To^mship 
and the other two in the Rodney Oil Field, Aldborough Town- 
ship. Experience in the United States and in 'estern Canada, 
indicates that many of the old oil fields can again be 
brought into production on a commercial basis by the use of 
water flooding for the secondary recovery of oil. It would 
appear, therefore^ that such undertakings in this province 
under proper conditions, should be encouraged in the 
interests of fuel conservation. 






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